THE THIRD WAVE: Look Who's Going Into Foreclosure NOW!!!

By
Real Estate Agent with Douglas Elliman Real Estate 30HA0800896
https://activerain.com/droplet/kSH

THE THIRD WAVE: Look who is going into foreclosure NOW!!!

TARP WAS A LIFELINE TO A DROWNING FINANCIAL WORLDThere is going to be a Congressional hearing in the next day or so to evaluate the results of TARP on financial institutions and on the housing market...wonder what they will find out?---and what they will tell us???

I have heard rumors that some of the banks used their funds that were designated to help out the homeowners, to pay off their "bailout" money. One of the contingencies of the bailout was that the banks would remain under the microscope of the government as long as they owed the Tarp money. Some financial institutions paid off the "loans" in order to escape the scrutiny of the government!

Meanwhile, the next wave of foreclosures is starting--this time it's the homeowner who has never had financial problems during theTHE THIRD WAVE OF FORECLOSURES Great Recession....Until now!

 

 

 

FIRST WAVE: The homeowner who put nothing down on their home, had no job but was the "protected" class who the government insisted become homeowners at all costs. Below, I have included the NY Times article from 1999 regarding the Clinton administration taking the idea of home ownership for the poor: 

http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

SECOND WAVE: The homeowner who was caught off guard, trades people who lost their jobs/businesses because of the crash, the "pink slipped" financial workers,  the real estate agents who were left with no income because of the housing bust. 

THE THIRD WAVE: The middle class and upper-middle class small business owners who lost revenue from the recession. This would include restaurants, shops, specialty manufacturing,

The housing recession (or depression, depending upon from where you are looking at it!) has not abated--it has not ended and it has in fact become worse.

This time, the people who are being foreclosed upon are those who had no problem in the past with their finances; even in the recession, these homeowners were able to go forward without much harm from the downturn. They still had their jobs,  were paying their bills on time and the possible loss of their home was so far out of the realm of reality that it never came to mind for them.

Now, the middle class and the upper middle class are under duress---they are suffering from the long drawn out financial messes caused by the initial crash of the real estate market. The Third Wave is made up of the Baby Boomers trying to retire and can't; the new level of financial or Wall Street worker who is considered "excess baggage", and all the businesses associated with a thriving real estate market. This next wave of foreclosures is sure to be the final nail in the coffin of the real estate market as we know it.

Today, Congress is meeting to hear the bad news about the failed attempts to rescue the housing market and ultimately the whole financial system of the US. The hearing is a review of the results of TARP, the $872 Billion bailout of the banks and the financial institutions that started the whole problem in the first place though their packaging of the bad loans with good in order to sell them as "Good" investments!!

TARP Failed ( What we know of as the "big bank bailout' that was put into effect after the failure of Lehman Bros)

HAMP Failed (Instituted in 2009, It helped fewer than 200,000 homeowners stay in their homes through mortgage modifications).

WILL WE HEAR WHAT THE TRUTH IS ABOUT WHAT THE EFFECTS OF "TARP" HAS HAD ON HOUSING IN THIS HEARING?. WILL THERE BE ANOTHER ATTEMPT TO MANIPULATE THE HOUSING MARKET OR WILL THERE BE A CAPITULATION  OF THE GOVERNMENT TO LET THE HOUSING MARKET JUST REPAIR ON IT'S OWN???

 

 

 

 

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Re-Blogged 14 times:

Re-Blogged By Re-Blogged At
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  2. Highland Beach Condos David Serle 10/06/2011 07:09 AM
  3. The Keith Kropp and Wayne Rogers Team 10/07/2011 04:29 AM
  4. Gareth Ellzey 10/07/2011 05:00 AM
  5. Karen Steed 10/07/2011 08:10 AM
  6. Harcourt Bethel - REALTOR®,CDPE,ABR®,SFR,ePro®,TRC, 10/07/2011 12:53 PM
  7. Jerri Schick 10/07/2011 04:29 PM
  8. Stephanie Anson 10/09/2011 10:04 AM
  9. Ronald Gillis 10/10/2011 03:24 AM
  10. Hector Reyes 10/11/2011 04:57 PM
  11. Art Flores 10/12/2011 01:18 PM
  12. Susan Goulding 10/12/2011 06:28 PM
  13. Winston Heverly 08/12/2012 02:28 PM
  14. Bob Crane 08/12/2012 02:56 PM
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Tags:
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Rainmaker
73,498
Hector Reyes
NHNR - Victorville, CA
Southern California

I agree with Corinne, is hard to keep a buyer on a first stage of the short-sale

 

Thanks Paula for this post

Oct 11, 2011 05:01 PM #151
Rainer
296,283
Paddy Deighan JD PhD
TimeshareLawyers.pro - Vail, CO
Paddy Deighan J.D. Ph.D

the report will come out and then it will be attacked by those that disagree,,,,if the report indicates that TARP was a waste of money, the l;eft will attack it; if it states that the money was well spent, the Republicans will attack the findings.  The bottom line is that it does not appear that the money was well spent.; Stimulus cost taxpayers $278,000 for every job created. Any CEO would be fired for such and ROI....Fearless CEO Obama needs to go!!!

Oct 11, 2011 09:55 PM #152
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Hector: I have seen short sales go through 3-4 buyers or more before the bank finally closes!

Paddy: I agree; if he did his job well we would be on a  steady, if small, growth pattern. We have not reached any sense of growth however, because the minute it looks like we have, Obama does someting else that brings us down! I think it is intentional-

Oct 12, 2011 01:27 AM #153
Rainer
7,782
Marianne Leizure Realtor Ocean Pines and Ocean City Home Sales
Coldwell Banker Residential Brokerage - Ocean Pines, MD

I have to believe that the TARP money was indeed used to 'pay back' the initail bail-out...when I got a loan-mod in 2009 - Citibank  said I didn't qualify for the TARP BUT gave me their own version - which was identical - except there were no extra 'perc's for on-time payments, etc. I took it because I was just so happy to have something that I could then manage...as the initial problem in the 1st place was JOB and Less INcome for both my husband and I - I am REALTOR (18 yrs) but we live in a Seasonal Beach Resort of 2nd homes - and need I say more? Regular jobs tend to be Seasonal in nature and temporarily 'pink slipped' come Thanksgiving thru Easter when they start to need workers again. The Depressed Economy of the last years has further plagued the majority of small business owners that employ the majority of local owners - and foreign students. YES, I'd say Baby Boomer property owners ARE the ones most affected in my area because now they don't have a choice to sell when they moved or purchased their retirement place since 2002 on. Sure, I saw some Buyers scarf up 2nd and 3rd properties by borrowing on their primaries or interest only/No docs from 2004 on....but many of us purchased move-up primary homes with income to back it while the market was 'booming' along for years...I guess when it Stopped Cold Turkey in 2006 (here) and then quickly started to spiral down with only 1/2 of the Sales Units reported, it created a Big Black Hole and pretty much everyone's livelihood suffers. The only 3 RE agents who do the REO's have income these days (and no life) and now that stream of income has put on the brakes this entire year....something needs to level out. I now see where Home ownership is only secure if you OWN the home and when no one can make you leave. If they take away more incentives - like interest deductions - there may be no more point except investment/rental and prices will come down to where someday, we can all pay cash again??? Or our kids can.

 

Oct 12, 2011 08:41 AM #154
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Marrianne: Sounds like your area is very much like the Hamptons---I got a modification in 2009 too and it was not HAMP but my bank who did it for me---it cost me over $40 thousand out of pocket and I got  5% for 30 years--only problem: my payment did not go any lower so I am back to square one all over again, especially since our market has gone dead again--just like it did in September '08. I am a boomer too with my largest investment in my home which is now worth a lot less than it was 5-6 years ago. I really belive that the idea of homeownership is going through  a major reform for a huge segment of the population and as a result, rentals are through the roof here. We had a +15% increase in rental inventory this past year and we are running short of year round houses----almost all are rented for winter through next year. That tells me a lot about the state of the amrket!

Oct 12, 2011 10:11 AM #155
Rainer
120,944
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

Marrianne & Paula, WHO did you do that modification with is my big question - I GUARANTEE it was NOT with the owner of your purported mortgage or note!!!  You, like most Americans have been duped in the worst way, and now, you owe for this 'modification' and in reality, you ALSO OWE on the mortgage you 'modified.' What is even worse, the overwhelming majority of loan modifications ARE DESIGNED for you to fail as well - that way, they get more money from you over a few more years, then boom, your right back where you were, or worse than before the 'modification!'  PLEASE research and look into what I am saying, because once you do, you will find, unfortunately that I am right, that is what is happening left and right.  That is why, those of us who have become knowledgeable with the foreclosure mess WILL NOT MODIFY because we DO NOT owe the entity trying to get money from us.  You 'modified' with the SERVICER most likely, but for sure, NOT THE OWNER.  Absolutely crazy and wrong on so many level, but PLEASE do your research.  It IS an eye opener!!  It took me a couple years, so give it time, but be persistent in your research!!

Oct 12, 2011 02:41 PM #156
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Ronald: The bank is Wells F And the underwriter was US Bank I think....I was told by the mrtg broker who is the manager of WF here in SH that they never sell their mortgages--I had asked because right as I was re-finiancing American Home Mtg went under and I saw the disasters that followed in the wake of that. That was well before the '08 crash. I am friendly with this individual and she does not strike me as someone who would lie to me--however, when I found out there was another bank involved, I called her right away and she agreed that there was another bank---I guess US bank is a very large mtg bank--do you know who they are? I am not a mortgage person so when she explained it to  me she said they were underwriters---I asked what does that mean? does that not mean that there is another bank doing my loan? She did not handle the discussion to my satisfaction but I was in deep there and thought the modification was a good thing...she actually had me connect with a HUD office in East Hampton  to help out but I did not get any satifaction until I wrote a letter tomy congressman who is the one I told you about--he was in contact with the OCC (Office of the Comptroller of the Currency) The thing that got to me was that by the time they were finished with me they had every penny+ I had not paid...the reason I had not paid was because in order to qualify I had to be 3 months behind in payments--you know the whole wrap they give you....I was up again a huge chnge in int rate as my mtg adjusted and that was what I needed to save myself from. What a mess!

Oct 12, 2011 03:04 PM #157
Rainer
120,944
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

First off, I don't think she lied intentionally, MOST DON'T KNOW THEMSELVES, and as soon as you said WF, and they "did not sell the mortgage and keep all of them" and "I had to be 3 months behind in payments" my blood started to boil.  They ARE ALL getting them (mortgages) off their books almost immediately (put into trusts so find out which one), and certainly within a few weeks, and more WRONG, NO ONE NEEDS TO BE LATE TO QUALITY FOR THE MODS - ANOTHER BOLD FACED LIE TO GET MONEY FROM YOU!!  THAT IS WHY MY BLOOD IS BOILING!!!  They want you to be late for several reasons, the servicers make BIG MONEY on those late fees, AND most people, once late can't dig themselves out of it, so guess what happens??????  FORECLOSURE - they WANT your home, not the BS "we don't want your home crap." that we have all been feed for our whole lifetime!!  Understand, it is not just a WF thing, they ARE ALL doing it, B of A, WF, Chase, on and on!! The fact that you also mention USBank, that was another BS lie.  Understand, more than likely, your friend does not know, but your case is textbook classic crap they are pulling.  As I said before PLEASE do YOUR research, you will find everything I stated was dead on.  Wish I was wrong, but I have been learning for three years now.  Also, MERS just changed their website, but maybe you can get assistance from your rep, to find out who really owed the purported mortgage you thought you 'modified' - if you like, I can call you, and give you some direction.

Oct 12, 2011 04:04 PM #158
Rainmaker
856,247
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

This is right on no one is going to escape the crush.  The size of the fraud is bigger than most would acknowledge.  To bail out the very banks that caused the problems in the first place is crazy.

Oct 12, 2011 06:44 PM #159
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Ronald and Mark: This is so frightening to me---I have not been able to locate my mortgage in MERS and am really worried now. Can you tell me what is going on with the exposure of these things? It seems with  many people being victimized that there should be something or someone to turn to to get answers--or are they all in on the scam to get my house??? It looks my worst fears may be true!

Oct 13, 2011 02:43 AM #160
Rainer
120,944
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

Paula, like Mark just said, the size is bigger than the government is willing to admit, which is also a big part of why victims are getting no help or answers. Many are seeking answers, most give up during that seek, it is those of us that persist that are learning the true things happening. Your fears are the tip of the iceberg, and there is a lot below you don't see. I keep saying, do your research, it can take a lot of time. There is stuff I can't say here, but sometimes, as I mentioned before, it can take a year or more to find out stuff. BE PERSISTENT, you never know where, when, how, or who your information will come, so do not give up! From what you said here, your in the rare position that you were able to dig yourself out of, most can't do that, you were lead down that path by the banksters for a reason, again, I say DO YOUR RESEARCH, open your eyes, as everyone needs to open their eyes!!!

Oct 13, 2011 03:28 AM #161
Rainer
80,162
David Laven
Keller Williams Realty Boston Metro - Boston, MA

Good post. wish it was not true but it is:(

Oct 13, 2011 11:44 AM #162
Rainer
61,026
Shawn King
CBCMA / CBC Mortgage Agency - Los Angeles, CA
Chenoa Fund--Get Signed Up.

What a popular post.  I only had to dig through 164 comments.  Nicely done.

Oct 14, 2011 07:51 AM #163
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Shawn: thank you---only 164, huh? We have covered the waterfront here and if you are able to read each and every comment you will see that the members here on AR are the sharpest tacks in the business.(and all real estate related businesses too!)

Oct 15, 2011 04:51 AM #164
Ambassador
1,724,988
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Paula - I think we will never be able to really comprehend it. Too many factors affect the economy, it is a complex syustem when change of one parameter cause changes, and the outcome is never predicted with any type of exactness.

I thought that it was a disaster from day one. We would fall hard but would have forgotten it by now, and save the money We are simply prolonging the crisis

Thank you for your thoughtful blog

Nov 26, 2011 02:21 PM #165
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Joe: I agree that if we had let it fall we would be well over it by now! However, the problems were, as you suggest, too complex for a typical recession to clean up after the balooning economy fell apart. So we need to keep at it in terms of letting it normalize and remember that there are segments of the economy that will never be able to be "repaired" by interference by the government.

Nov 27, 2011 02:38 AM #166
Rainer
135,682
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

No question that most of what the Government has tried to do has not really stemmed the tide of foreclosures, and free market factors have made the biggest difference.  I wouldn't be surprised to see a few more "waves" in the next few years.

Mar 14, 2012 02:28 AM #167
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Matt: In spite of what the government has attemted to do, there has been such a weak affort on the part of the banks to do anything for people and that is the rub. Banks are not know for their compassionate, caring ways...

Mar 14, 2012 11:37 PM #168
Ambassador
4,564,116
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks Paula, I fear that you are correct and that we are far from the recovery that we are all so desperately hoping for.  Hopefully this next wave can be softened some by the lessons learned in the past waves, and many of these foreclosures can become shortsales rather than the highly wasteful foreclosures.

Aug 12, 2012 02:56 PM #169
Rainmaker
500,719
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Bob: Well after all this time and nothing of substance done for the struggling homeowners, the banks are now going to have to answer to the Fed. The Foreclosure Review has now extened it's deadline for homeowners who were foreclosed upon and "harmed by the modification process" to file thier reports for review--just to see if the "help" that was out there from the bailout of the banks really worked or not....Guess what? There were so many people harmed and so few helped that the can of worms has exploded and the Fed's review will take forever to be completed! Will we ever know if the banks DID help the struggling homeowner or not??? My guess is, because of the enormity of the whole thing--we may get a pat on the head in 10 years saying: "We are so sorry this whole thing did not work out the way we planned, dear homeowners!....but we will make good on our promise to make sure you are made whole: Here is a $1500.00 stipend to help you along--we are taking it right out of the Banks coffers! So there you bad, bad banks!"

And what do we gain from this folly?  Fewer and fewer average Americans want to own thier own home now--more and more find that renting is a better, more risk free way to live in a home---real estate takes it in the neck--agaiin!!!

Aug 12, 2012 08:14 PM #170
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Rainmaker
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Paula Hathaway, REALTOR, LBA

...A Local Expert in all The Hamptons
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